Category

Archives

Scottish house prices are expected to rise by 5% over the course of the year.

Scottish house prices are expected to rise by 5% over the course of the year due to a lack of properties entering the market, according to a report.

The Royal Institution of Chartered Surveyors (Rics) found prices were being driven up as supply failed to meet a rising demand for homes.

Across the UK, a net 43% more surveyors noted price rises and growth in August.

In Scotland, 28% more members said they expected prices to continue rising over the next three months.

The organisation's latest residential market survey, using analysis of Office for National Statistics (ONS) data, suggested property values were likely to rise by about 6% across the UK over the course of 2015.

The strongest price growth is forecast in Northern Ireland, where prices are now anticipated to rise by 11% over the year.

Rics in Scotland director Sarah Speirs said: "Given current market conditions, the latest data unsurprisingly shows house prices continuing to rise, and at an accelerating pace.

"As the Scottish government increases investment in initiatives such as Help to Buy, which further stimulates demand while failing to address the critical issue of housing supply, more needs to be done to increase and expand housing supply.

"Despite reported price growth, the agreed sales balance in Scotland edged upwards and demand remains steady, but a more robust recovery in activity is continuing to be held back in part by the lack of stock on the market."

The Scottish government announced earlier this month that it would spend £195m over the next three years on a new shared equity scheme to help people buy new-build homes. Ministers said the new scheme would focus on affordable homes.

In the lettings market, the study found 20% of surveyors predicted a rise in rents during the next three months